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<h2 id="quick-take">Quick Take</h2> 
<p>The Federal Reserve’s balance sheet contraction continues at a heightened pace, according to recent data. In the last week, the Fed drew down its balance sheet by $46 billion, a substantial increase from the <a href="https://cryptoslate.com/insights/feds-balance-sheet-signals-cautious-but-consistent-quantitative-tightening/">$6 billion reduction</a> the previous week. As a result of this quantitative tightening, the balance sheet now stands at $7.8 trillion. This contraction signifies a continued shift away from the expansionary monetary policy implemented during the height of economic instability.</p> 
<p>However, this balance sheet reduction is still dwarfed by the Fed’s response to the financial turbulence in 2020. In the span of a few weeks, the Fed had expanded its balance sheet from $4.1 trillion to $7.1 trillion through an aggressive quantitative easing program. Despite the ongoing reductions, the Fed’s balance sheet remains nearly $1 trillion higher than it was in July 2020, highlighting the magnitude of the intervention required to stabilize financial markets.</p> 
<figure id="attachment_374801" aria-describedby="caption-attachment-374801" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="wp-image-374801 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/11/FRED1.png" alt="Federal Reserve Balance Sheet: (Source: FRED)" width="1316" height="445" srcset="https://cryptoslate.com/wp-content/uploads/2023/11/FRED1.png 1316w, https://cryptoslate.com/wp-content/uploads/2023/11/FRED1-300x101.png 300w, https://cryptoslate.com/wp-content/uploads/2023/11/FRED1-1024x346.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/11/FRED1-768x260.png 768w" sizes="(max-width: 1316px) 100vw, 1316px">
 <figcaption id="caption-attachment-374801" class="wp-caption-text">
  Federal Reserve Balance Sheet: (Source: FRED)
 </figcaption>
</figure> 
<p>The post <a href="https://cryptoslate.com/insights/federal-reserve-accelerates-balance-sheet-reduction-with-46-billion-cut-in-a-week/">Federal Reserve accelerates balance sheet reduction with $46 billion cut in a week</a> appeared first on <a href="https://cryptoslate.com">CryptoSlate</a>.</p>

Federal Reserve accelerates balance sheet reduction with $46 billion cut in a week

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